Medical device maker reaches $80M settlement
A medical device maker has agreed to pay about $80 million to end a federal investigation into one of its acquisitions.
Styker Corp. in Kalamazoo said today that it has entered into a settlement with the U.S. Department of Justice related to its acquisition of OtisMed, which the U.S. said was marketing a product that hadn't been approved by regulators.
Stryker said that the DOJ acknowledged that the sales occurred before Stryker bought OtisMed in 2009 and that it was unaware of those sales.
Stryker first revealed the federal investigation in 2010 and set aside $80 million to cover a possible settlement. It will pay $79.6 million plus interest.
Shares of Stryker (NYSE: SYK) hit an all-time high today of $95.37.
OtisMed's technology is part of Stryker's Shapematch Cutting Guides, which use data from CT scans or MRIs to develop disposable surgical guides used in knee-replacement procedures.